The Federal Board of Revenue (FBR) failed to recover Rs. 117.78 billion in super tax from large taxpayers over the last two years due to weaknesses in tax assessment and system deficiencies, according to the Auditor General of Pakistan’s Audit Report for 2024-25.
According to the report, the FBR’s tax return system is unable to automatically calculate super tax accurately because it does not include all taxable sources of income while determining the liability.
The audit found that 527 large taxpayers did not pay the required super tax, resulting in an overall shortfall of Rs. 117.78 billion. Serious irregularities related to super tax assessment and recovery were identified across 19 FBR field formations.
The Auditor General said these flaws have repeatedly led to under-assessment and under-recovery of super tax over several years.
In its response to the audit, the FBR said legal proceedings have already been initiated in cases involving Rs. 71.21 billion in unpaid super tax.
The tax authority added that cases involving another Rs. 46.56 billion are currently pending before courts, delaying recovery.
The Departmental Accounts Committee (DAC) has directed the FBR to complete legal proceedings and submit a compliance report to the audit authorities.
The Auditor General also recommended upgrading the FBR’s return filing system to ensure the automatic and accurate calculation of super tax by incorporating all relevant sources of taxable income, preventing future revenue losses.
The report noted that the issue of under-recovery of super tax has been repeatedly highlighted in audit reports over the years, indicating that the underlying weaknesses remain unresolved.
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